Gaurav Rathore
His write-ups blend creativity, personal experience, and tailored technical advice, meeting reader needs effectively.
Bitcoin and other cryptocurrencies are leading the financial markets nowadays. As a result, many individuals are interested in crypto exchange trading but worry about illegitimate and safe transactions.
Many people think Coinbase is the most trusted trading platform since it facilitates buying and selling cryptocurrencies effortlessly for people. However, as the largest cryptocurrency exchange in the United States, it still raises the question, “Is Coinbase safe?”
You may think, “Is Coinbase legit?” or “Is Coinbase One worth it?”. So, to solve your queries, today, we’ll explore everything you need to know about this most trusted crypto trading platform.
Coinbase is a global crypto exchange platform that operates the transfer, buy, and sell of digital currency. Founded in 2012 by Brian Armstrong and Fred Ehrsam, it has grown widely to offer various services for crypto enthusiasts.
It is a publicly traded American company that offers more than 250 different cryptocurrencies for users all over the world.
Coinbase is one of the most trusted platforms for people and businesses looking to invest in crypto coins. The company also provides basic tutorials for beginners on how to invest in cryptocurrency.
Now that you know about Coinbase, let’s dive into the concerns regarding safety.
Yes, Coinbase is a safe choice for cryptocurrency traders looking to invest in digital money.
Coinbase is the largest crypto exchange in the US with millions of cryptocurrency buyers and sellers. The platform offers easy navigation and “simple” trading options. On top of that, it includes numerous security features to secure users’ data and financial assets.
In addition to the security measures, this company is regulated by the Securities and Exchange Commission (SEC). This proves that it provides higher transparency in transactions and safety measures for every user.
As the largest crypto exchange platform, cybercriminals often attack Coinbase. A daily trading volume of over $1 billion attracts many hackers and fraudsters, causing Coinbase to be victimized by many security incidents previously.
Here is the rough history of Coinbase’s dealings with cybercriminals:
Hackers exploited a loophole in Coinbase’s SMS-based two-factor authentication (2FA). After that, they stole the cryptocurrency of 6,000 customers. It was not a small hack, as phishers also get access to users’ private emails through phishing scams.
The incident was reported by The Verge when Coinbase users faced transaction delays in the US. Due to technical issues, traders were unable to make payments and withdrawals using US bank accounts. This digital glitch bothered numerous customers and caused them to wonder, Is Coinbase a scam?
This time, a hacker group called “Octopus” managed to get login credentials of Coinbase employees. Fortunately, customers’ cryptocurrency was safe, and the company was able to stop the incident. The vulnerability again raised the concern, “Is Coinbase legit?”
Coinbase unintentionally earned around $1 million when some hackers attacked Curve Finance (Automated Market Maker). It caused price swings in the DeFi market. After the attack, Coinbase promised compensation but has yet to fulfill that.
Previously, Coinbase struggled with many vulnerabilities and technical issues. Following the safety concerns, Coinbase came up with new security measures to improve user safety. Here is the list of those features:
Users can create a strong and unique password to protect their Coinbase cryptocurrency account. A password is encrypted and stored offline so it can protect your confidential information.
Coinbase recommends the two-factor authentication option rather than the default SMS method. Using 2FA with a security password and email can confirm your access to the account.
The Coinbase Vault option allows you to add extra security while withdrawing your cryptocurrency. It is like a normal wallet where you receive and keep money, but with several security options to prevent unauthorized access.
If you notice any suspicious activity in your Coinbase account, you can lock your account anytime and anywhere. It would stop further undertakings of your account.
This cryptocurrency exchange platform provides stronger protections for its customers. It monitors third-party breaches and threats, and if any breach is found, it automatically secures your login credentials.
Coinbase offers proactive security notifications for all major security changes. It helps you to stay informed about security updates and lock your transaction account.
A cold storage wallet is similar to a crypto wallet and secures your cryptocurrency in offline mode. Coinbase wallet can transfer your cryptocurrency in a storage wallet that exists into hardware devices without an internet connection.
Besides 2FA, Coinbase also delivers security prompts. It is the additional verification method that approves or denies a login attempt on other devices.
If you find anything strange and inappropriate, you have the option to cancel your transactions. Moreover, Coinbase executes machine learning models to determine transactions.
Coinbase has added all these security features to remove vulnerabilities and loopholes in its system.
The reliable answer to the question, “Is Coinbase safe?” is yes. Now let’s talk about the Coinbase Wallet.
Coinbase Wallet has generally adopted a “self-custody” nature. It shows that you are solely responsible for protecting your Coinbase wallet instead of a third-party assurance. You can create a security code that adds an extra layer of protection to your wallet account.
This means that Coinbase itself and other individuals can’t get access to and recover your funds.
Here, you can store thousands of different cryptocurrencies, such as Bitcoin, Ethereum, Solana, and Dogecoin. You can have complete control of private keys and can also preserve digital assets, including tokens, NFTs, and smart contracts.
Moreover, this platform has a browser extension that is compatible with the ledger hardware. The browser extension makes it easy for cryptocurrency traders to use the app on desktop and mobile applications.
Here are some quick tips you can use to secure your Coinbase Wallet account.
All in all, Coinbase Wallet is safe for everyone.
Although Coinbase offers several security features to prevent cyberattacks, its safety solely depends on the security practices you use to safeguard your confidential information and funds.
With the following security practices, you can protect digital assets in your account.
Extending crypto markets attracts many cyberpunks. However, you can use these security tactics to reduce the risk of fraudulent activities.
No, Coinbase is not meant for kids since you must be at least 18 years old to use Coinbase services.
Due to the increasing popularity of cryptocurrency, especially Bitcoin, kids have also started joining the trading app. However, since they lack financial knowledge, it’s obvious they might end up making huge losses.
Moreover, Coinbase requires the Know Your Customer (KYC) regulations from everyone. It can limit the use of minors to buy and sell cryptocurrencies because KYC only authorizes 18 or above users.
However, you can create Coinbase accounts for your kids and open a minor custodial account to buy assets for your kids. When your kids become adults, they will become the sole owners of their accounts.
So, it depends on you whether you want to keep your kids away from risky investments or create their custodial accounts.
Undoubtedly, Coinbase is a safe and legitimate trading app. It offers two-factor authentication (2FA), cold storage for offline perseverance, biometric locks, and MPC technology. These security measures allow you to improve the security of digital assets.
However, you can’t ignore the past vulnerabilities of Coinbase that still affect many current users. So, it is advisable to use extra security steps to safeguard your wallet and account.
So, stay cautious and make sure to add extra-level security while using the Coinbase app!
Yes, Coinbase is the most trusted platform and millions of people use it for cryptocurrency trading. But you should be careful about cyberattacks and threats while using Coinbase.
It is difficult to consider which app is no. 1 in digital trading. However, Coinbase continuously ranks as one of the safest platforms with several security measures.
Coinbase is an entirely legal platform regulated by the Securities and Exchange Commission (SEC). It is registered with FinCEN and New York’s BitLicense.
Coinbase offers free crypto coins for beginners or new users as a bonus. But it also charges high trading platform fees from customers. Explore yourself about Coinbase fees and free crypto before signing in.
Absolutely, Coinbase One (premium) intends to deliver the best trading services for individuals and businesses.
